California foreclosures at 9-year low

InmanNews Features

SAN FRANCISCO (Inman News Features) -- The number of California homes going into foreclosure declined during the second quarter to the lowest level in nine years as the result of a strong residential real estate market and rising home values, according to DataQuick Information Systems.

Lending institutions started foreclosure proceedings on 19,514 homeowners during the April-to-June period. That was down 11.1 percent from 21,938 for the prior quarter and down 9 percent from 21,440 for the second quarter of 2000.

The numbers have been in decline on an annual basis since early 1997, according to La Jolla, Calif.-based DataQuick. Last quarter's number was the lowest since the first quarter of 1992, when 18,806 default notices were recorded. The all-time high occurred during the first quarter of 1996, when 44,665 defaults were recorded.

"Because homes are going up in value, most homeowners who find themselves in financial distress can sell, pay off the mortgage and even walk away with some money. Still, it may be that we're getting close to a base level of activity here," said Mike Ela, DataQuick's president.

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